Commons Speaker John Bercow escapes another increase in the cost of his taxpayer-funded pension

John Bercow, the Speaker of the House of Commons, has escaped another increase
in his pension contributions.

John Bercow, the House of Commons' Speaker, has decided to hang on to a generous deal which guarantees him a pension of half his salary as soon as he stands down, regardless of length of service.Photo: PA

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Three senior politicians are exempt from the changes because they hold Great Offices of State pensions: Mr Bercow, David Cameron, the Prime Minister and Chris Grayling, the Lord Chancellor.

Mr Cameron and Mr Grayling have previously signed waivers and agreed to accept the increases and pay into their pension schemes, as in previous years.

However, Mr Bercow has so far declined to follow suit and has decided to hang on to a generous deal which guarantees him a pension of half his salary as soon as he stands down, regardless of length of service.

The changes mean that the Prime Minister will pay another £913 a year into his pension scheme while Cabinet ministers will pay an additional £818.

Ministers of state will pay an extra £388 each to fund their ministerial pensions.

The changes only affect ministers' salaries on top of their pay as MPs of £66,396 a year. MPs' pay and pensions are set separatel by Parliament's expenses watchdog.

Francis Maude, the Cabinet Office minister, will say that ministers and Whips will be paying up to 16 per cent in contributions from April 2014, while Cabinet ministers could be paying nearly 18 per cent, making their contributions one of the highest in the public sector.

A spokesman for Mr Bercow referred to a statement he made in 2012 on the issue: "The pension arrangements of the office of Speaker would mean that in his case, he could retire in his mid-50s, be able to earn an income and also be in receipt of the Speaker pension at a relatively young age. The Speaker does not believe that this is right.

"Having taken appropriate advice, he has therefore proposed before he leaves office to waive his entitlement to the Speaker's pension until he reaches the age of 65.

"At current prices this will mean, along with the pay cut he took in 2010, a total minimum saving of approximately £430,000 to the exchequer. The Speaker believes it would be wrong, especially in the mcurrent economic conditions, not to depart from the status quo in hism particular circumstances."